Barclays 2024 Consumer Spend Report reveals limited growth

The report details spend activity across a multitude of sectors including ‘retail’, ‘hospitality and leisure’ as well as ‘eating and drinking. It showed overall, consumer card spending increased by 1.2% year upon year throughout September after returning to growth within August.

Barclays head of retail Kate Johnson said: “Retail’s recovery emerged as a bright spot in September, despite there being colder weather and darker evenings on the horizon.”

Overall growth figures from the report showed spending on groceries declined (0.8%) for the very first time since June, with supermarket spend growth recorded at a decline of 1.1%, with transaction growth down by 2.0%. 

Consumers spent less on essential items, choosing to indulge in other items such as entertainment, clothing, health and beauty. Essential spending also experienced its most drastic decline since April 2020, Barclays said.

Contrastingly, pubs, bars and clubs experienced limited growth, noted at 0.6%. Consumer interaction decreased from 3.2% throughout August, with 40% of consumers looking to cut back on more optional spending, saying they were aiming to reduce the amount spent on drinking out to save money.

Shoppers were particularly interested in seeking out value, discount and deals within weekly shops. With 70% of consumers interested in these elements when shopping, also choosing to seek out loyalty schemes and utilise vouchers.

Shoppers were typically aiming to get more money reduced from their shopping. With two-fifths, (39 per cent) of Brits stating they are ‘slow shopping’ with the intention of being more intentional with purchasing habits.

Event interaction ​

‘Insperiences’ on the whole, saw small amounts of improvement throughout September, with up to 4.3% in contrast to 3.0% during August. Entertainment as a category, also experienced a spend increase of 14.4%, with retail spending rising to 1.1% throughout September. Consumers on the whole, said there were luxury purchases they were more inclined to indulge in. Entertainment spending reached a 14-month high, with musical events influencing interaction significantly.

Key events to note were the Oasis reunion tour, with sales at 35.8%, a year-on-year boost for both live concerts and shows. Spend on the day of general release was reportedly six times the rest of the month’s average daily spend.

Entertainment also saw its highest uplift in sales since July 2023 with the Taylor Swift Eras Tour significantly impacting spend habits.  

Non essentials​

Non-essential spending saw a direct increase, showcasing the highest figures of growth so far throughout this year. With spend growth recorded at 2.7%, and transaction growth at 2.3%.

Sweeter treat choices increased spending on average to around £22 per month. More than half of consumers at (53%) explained there are treats or luxury purchases they continue to buy, even when aiming to budget or be stricter with spending.

Spending on clothing increased to 23.6% month upon month, 4.5% year upon year, logged as the categories first uplift throughout 2024, and the highest growth it experienced since July 2022. Department stores also saw a significant boost of (5.5%) since August 2023. Almost half (45%) of consumers also noticed the effects of dynamic pricing at checkouts, with 46% who noticed it impacting live events, in particular tickets. Digital content and subscriptions also saw notable increases, at 10.6% with popular streaming shows aiding boost in consumer interaction.

Consumers also interacted with home shopping significantly throughout September, as online retail spending (excluding groceries) was recorded at 3.5%.

Christmas impact and rising food prices​

Throughout the lead up to Christmas, almost a quarter of Brits (23%) anticipate the season will have more of a financial impact than the last year.

Generally, 88% of UK adults voiced concerns around rising food prices. With 87% also concerned about inflation. Four in five Brits (82%) have said they are also concerned about shrinkflation. Consumers worried about shrinkflation also noticed staples such as chocolate (57%), crisps (47%) and sweets (34%) increase in price.

Many UK spenders have also begun reusing old decorations (33%), keeping an eye out for festive offers (26%), and buying gifts in anticipation of the season, in to spread costs (22%).

Johnson said: “While shoppers’ remain cost-conscious, it’s clear they’re responsive to retailers’ promotional activity. Discerning shoppers are also finding room for treats and little luxuries within their budget, demonstrating that consumers are spending money on things that bring them joy”

She continued: “While many are anticipating a costly Christmas, there are encouraging signs that people feel confident in their ability to manage their household finances and take control of their festive spending.”